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[Federal Register Volume 89, Number 249 (Monday, December 30, 2024)]
[Notices]
[Pages 106480-106481]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30849]

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FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION

Community Reinvestment Act Regulations Asset-Size Thresholds

AGENCY: Board of Governors of the Federal Reserve System (Board); 
Federal Deposit Insurance Corporation (FDIC).

ACTION: Announcement of 2025 asset-size thresholds.

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SUMMARY: Under their Community Reinvestment Act (CRA) regulations, the 
Board and the FDIC (collectively, the Agencies) annually adjust the 
asset-size thresholds used to define ``small bank'' and ``intermediate 
small bank.'' As required by the CRA regulations, the adjustment to the 
threshold amounts is based on the annual percentage change in the 
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). Applying this annual inflation adjustment methodology, the Agencies 
are announcing that, from January 1, 2025, through December 31, 2025, 
``small bank'' will mean a bank that, as of December 31 of either of 
the prior two calendar years, had assets of less than $1.609 billion; 
and ``intermediate small bank'' will mean a small bank with assets of 
at least $402 million as of December 31 of both of the prior two 
calendar years and less than $1.609 billion as of December 31 of either 
of the prior two calendar years.

[[Page 106481]]

DATES: These asset-size thresholds are in effect from January 1, 2025, 
through December 31, 2025.

FOR FURTHER INFORMATION CONTACT: 
    Board: Amal S. Patel, Senior Counsel, Division of Consumer and 
Community Affairs; or Sumeet Shroff, Counsel, or Cody Gaffney, Counsel, 
Legal Division, Board of Governors of the Federal Reserve System at 
(202) 452-2412. For the hearing impaired and users of 
Telecommunications Device for the Deaf (TDD) and TTY-TRS, please call 
711 from any telephone, anywhere in the United States.
    FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory 
Policy Branch, Division of Depositor and Consumer Protection, (202) 
898-6859, [email protected]; Cassandra Duhaney, Counsel, (202) 898-
6804, [email protected]; or Alys V. Brown, Senior Attorney, (202), 898-
3565, [email protected], Legal Division, Federal Deposit Insurance 
Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

Community Reinvestment Act Asset-Size Thresholds

    Under the current CRA regulations,\1\ ``small bank'' means a bank 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.564 billion; and ``intermediate small bank'' 
means a small bank with assets of at least $391 million as of December 
31 of both of the prior two calendar years and less than $1.564 billion 
as of December 31 of either of the prior two calendar years.\2\ 
Pursuant to the annual inflation adjustment methodology described 
below, the Agencies are announcing that from January 1, 2025, through 
December 31, 2025, ``small bank'' will mean a bank that, as of December 
31 of either of the prior two calendar years, had assets of less than 
$1.609 billion; and ``intermediate small bank'' will mean a small bank 
with assets of at least $402 million as of December 31 of both of the 
prior two calendar years and less than $1.609 billion as of December 31 
of either of the prior two calendar years.\3\
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    \1\ In October 2023, the Agencies and the Office of the 
Comptroller of the Currency (OCC) jointly issued a final rule to 
strengthen and modernize their Community Reinvestment Act 
regulations. See 89 FR 6574 (Feb. 1, 2024). Although the final rule 
was intended to take effect on April 1, 2024, the final rule has 
been challenged in litigation, and the final rule is currently 
enjoined. As such, the legacy CRA regulations (referred to in this 
notice as the ``current CRA regulations'') remain in effect. The 
text of the current CRA regulations may be found: (i) in the 2022, 
2023, or 2024 bound versions of title 12 of the Code of Federal 
Regulations; (ii) in the historical version of the Electronic Code 
of Federal Regulations (eCFR) as of March 29, 2024; or (iii) in 
appendix G of the final rule, as published in the eCFR on February 
1, 2024.
    \2\ See 12 CFR 228.12(u)(1) and 345.12(u)(1) of the current CRA 
regulations.
    \3\ Historically, the Agencies have announced these annual 
inflation adjustments via rulemakings that amend the ``small bank'' 
and ``intermediate small bank'' definitions in their CRA 
regulations. See, e.g., 88 FR 87895 (Dec. 20, 2023) (implementing 
annual inflation adjustments for 2024). However, because the eCFR 
has been updated to reflect the text of the October 2023 final rule, 
and because the October 2023 final rule is currently enjoined, the 
Agencies have determined that this document (rather than a 
rulemaking) is the best vehicle for announcing the annual inflation 
adjustments for 2025. Once the litigation is resolved, the Agencies 
expect to resume their historical practice of announcing these 
annual inflation adjustments via rulemakings. The OCC adjusts the 
asset-size criteria for institutions that are subject to OCC-issued 
CRA regulations, including national banks and Federal and State 
savings associations, separately from the Agencies.
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Calculation Methodology

    The Agencies' CRA regulations establish CRA performance standards 
for small banks and intermediate small banks. The CRA regulations 
define small and intermediate small banks by reference to asset-size 
criteria expressed in dollar amounts, and they further require the 
Agencies to publish annual adjustments to these dollar figures based on 
the year-to-year change in the average of the CPI-W, not seasonally 
adjusted, for each 12-month period ending in November, with rounding to 
the nearest million.\4\ This adjustment formula was first adopted for 
CRA purposes by the Agencies and the OCC in 2005.\5\
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    \4\ See 12 CFR 228.12(u)(2) and 345.12(u)(2) of the current CRA 
regulations.
    \5\ See 70 FR 44256 (Aug. 2, 2005). Subsequently, the Office of 
Thrift Supervision (OTS), the agency then responsible for regulating 
savings associations, adopted an annual inflation adjustment 
methodology consistent with that of the Agencies and the OCC for its 
CRA regulations, previously set forth at 12 CFR part 563e. See 72 FR 
13429 (Mar. 22, 2007). The Dodd-Frank Wall Street Reform and 
Consumer Protection Act transferred CRA rulemaking authority for 
Federal and State savings associations from the OTC to the OCC. See 
12 U.S.C. 5412.
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    During the 12-month period ending November 2024, the CPI-W 
increased by 2.91 percent. Because the year-to-year change in the CPI-W 
was non-zero, the Agencies are making this annual adjustment. Beginning 
January 1, 2025, banks that, as of December 31 of either of the prior 
two calendar years, had assets of less than $1.609 billion are small 
banks. Small banks with assets of at least $402 million as of December 
31 of both of the prior two calendar years and less than $1.609 billion 
as of December 31 of either of the prior two calendar years are 
intermediate small banks.
    The Agencies publish current and historical asset-size thresholds 
on the website of the Federal Financial Institutions Examination 
Council.\6\
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    \6\ See https://www.ffiec.gov/cra/examinations.htm (``Current 
and Historical Asset-Size Thresholds and Examples'').
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    By order of the Board of Governors of the Federal Reserve System, 
acting through the Secretary of the Board under delegated authority.

Ann E. Misback,
Secretary of the Board.
Federal Deposit Insurance Corporation.
    Dated at Washington, DC, on December 15, 2024.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2024-30849 Filed 12-27-24; 8:45 am]
BILLING CODE 6210-01-P; 6714-01-P
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